Stryde Solutions

Wednesday, August 9, 2017

Did you know that most companies that are hiring go thru 10-20 applications before they hire? And many businesses don't take advantage of WOTC which provides a $2400-$9600 tax credit for each new hiree. Also, many managers that are using WOTC have to do all the work under deadlines that must be met to qualify for the tax credits. Our proprietary software does all the work swiftly and automatically.

July 17

Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.

July 31

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2017. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until August 10 to file the return.

Employers - Federal unemployment tax. Deposit the tax owed through June if more than $500.

Employers - If you maintain an employee benefit plan, such as a pension, profit-sharing, or stock bonus plan, file Form 5500 or 5500-EZ for calendar-year 2016. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.

Certain Small Employers - Deposit any undeposited tax if your tax liability is $2,500 or more for 2017 but less than $2,500 for the second quarter.

Sunday, June 25, 2017

There are many ideas floating around in this economy about what it takes to be successful.

Books by the 100's provide a prescription, a plan, or a word of advice. Most turn out to be very helpful but, I have noticed there is one thing missing from all of them. It is the one thing that is a common thread of every successful business person, company, or an investor.

Yes, we have to have a good idea that solves a problem or need; yes, good people are important; and yes, tenancity and persistance are all a must. But, there is one aspect of success that is deeper--one that, if missing, will cause failure. If you talk to successful people you will feel it, but they might not even mention it as THE key. They might blame their success on a new product, or a new computer, or on a good manager. They all miss the point!

So, what is it? It is excitement, enthusiasm and it's staying motivated. Making money is a good motivator; a dream motivates some, just working toward a goal motivates others.

Friday, May 19, 2017

The “Startup Act” – Catching the Economic Winds

The “Startup Jobs and Innovation Act”, properly evangelized within the economic development eco-system, can be reasonably expected to create jobs by nudging innovative technologies into the promised land of commercial success.

The “Startup Act” addresses major concerns of small technology businesses and startups. The government’s focus on bolstering startups is well-directed… “To jump-start economic recovery through the formation and growth of new businesses…”, …and well-founded. Paraphrasing Congress’ findings, “From 1980 to 2005, companies under 5 years old accounted for nearly all jobs created in the United States…accounting for 3M jobs annually…”. Therefore, “To get Americans back to work, entrepreneurs must be free (incentivized) to innovate, create new companies, and hire employees.”

Incentivizing and funding such early stage companies requires unflinching resolve given the operating losses typically experienced while a technology’s functionality and value proposition are market-tested, adjusted and re-tested until validated. Only then making the way clear to pursue economies of scale for production and marketing functions.

This resolve to support startups in many ways rests with the government which has adjusted tax code to create investor-friendly treatment to transform otherwise unacceptable risk-reward investment propositions into compelling deals.

Further, entrepreneur-friendly tax code has been created to help minimize the risk-taking inherent in the effort to bring innovation to the market and create good-paying technology-oriented jobs.

To be effective, the ‘good news’ about these entrepreneur-encouraging, investor-compelling, job-creating government-tendered incentives must find it’s way to the investors and entrepreneurs; and economic development agencies at state and local levels make the perfect evangelists.

So, let’s get to preaching the virtues of the “Startup Act” (note: “small business” and “startup” are used interchangeably):

Small Business (SB) Expensing

The small business expensing limitation was permanently restored to $500,000, thus encouraging small businesses to continue investing in economy-of-scale-producing assets that improve top line and bottom line performance. This means the SB can fully write off investment ‘costs’ as current expenses (up to $500,000) instead of fractionally allocating deductions against those costs over the course of multiple years.

The SB gets the profit-boosting effects from the employment of key assets AND the tax-reducing effects from fully deducting the cost of those assets in the current year.

The financial picture of the company is much brighter from these dual benefits and becomes a more attractive funding opportunity for investors who can justify better terms with the SB for the use of their capital.

If expensed costs can’t be applied against taxable income, then an investor may become a pass-through loss beneficiary as addressed below.

Small Business Investors

The attractiveness of certain small businesses to investors is greatly increased when 100% of an investor’s gains on such investments can be excluded from capital gains taxes.

Further, the qualifying criteria for a business to be able to offer such favorable tax treatment are less strict now. This means investors can find more of these opportunities. Likewise, more businesses can entice investors with this highly favorable capital gains tax treatment.

Investors as Beneficiaries of Startup Pass-Through Losses

Investors (in certain cases) can be the beneficiaries of losses being ‘passed through’ from the SB (where the business wouldn’t be able to apply said losses against taxable income).

Startups Benefit From “R&D” Tax Credits As Payroll Tax Offset

The PATH Act (“Protecting Americans from Tax Hikes”), related to the “Startup Act”, allows the technology-based startup, which is commonly rich in “qualifying research expenditures” and associated tax credits, but often lacking in taxable income, to now apply “R&D” tax credits against payroll taxes. Startups in this case, among other criteria, are firms with less than $5 million in annual gross receipts.

Instead of suffering the inability to take advantage of R&D tax credits due to taxable income restraints, the startup can now use these tax credits to offset their payroll taxes by as much as $250,000 per year for as long as five years.

Startup Cost Expensing Level Raised

In the same vein as SB Expensing discussed above, startups will be able to fully deduct up to $10,000 (up from $5,000). This is another $5,000 that can be written off as an expense versus depreciating fractionally over a 15-year allocation timeline.

Cash Accounting

The cash accounting method is both less complicated and less costly to maintain, while reducing regulatory risk, versus more sophisticated tax methods required in the past. More small businesses can use this favorable method; now firms with up to $10M in gross receipts, up from $5M, can opt in.

It’s not a reach to expect that a small business would save money from less complexity associated with their taxes. These savings, and the attention that would otherwise be focused on complex tax compliance matters, could be used to improve a venture’s chances for success.

Favorable winds are at the back of the entrepreneur and investor alike. But, if their respective sails aren’t set to catch those winds then the creation of good-paying jobs and the realization of market-transforming innovations will be less robust than it could be otherwise.

Those close to the entrepreneur and private investor, that is, anyone directly or indirectly tied to the economic development eco-system (you know who you are), would do well to take it upon themselves to “inform and educate” as it is safe to assume that the intended beneficiaries of this favorable legislation are focused on developing cutting edge technologies and making the next deal, and not so much on deciphering government policy.

Sunday, May 7, 2017

Do you have a USA business and need huge savings with no upfront costs?

We help a business grow in 6 ways.

These are the questions that we need answered to provide you with a summary of your savings (we can assist even if you only qualify for one area):

Do you own any commercial property?

Total Purchase/Construction Cost

Total Renovation Cost

Are your property taxes $30,000 or more

If so, annual real and property taxes combined.

How many new employees ( including replacements ) do you hire per year

Do you take Credit Cards? (no need to switch providers)

Is your waste or recycling over $300 per month? How much?

Is your workers comp premium over $40K per year?

We have a proven 30-year track record of helping Fortune 500+ Global Companies, Non-Profits, and Small Businesses reduce costs, improve their bottom line, and become more effective by offering a No Fee Cost Reduction Analysis. Clients include Bank of America, Sprint, ExonMobil, Volkswagon and many others. Average savings for clients is $500,000 - $1.2 million or 28% on annual costs, with no upfront fees.

Contact Larry at Lgpotter33@gmail.com

PS: We are looking for additional advisors in the USA. Tap Here Now No experience needed, we provide complete training. Telecommuting fine.

Wednesday, March 29, 2017

There is a difference between registration and filing. Tax-exempt organizations with more than $5,000 in annual gross receipts must register with the IRS, but they don't have to file the annual information report until they reach annual gross receipts of $25,000. Religious congregations have automatic Section 501(c)(3) status and are not required to register or file. Foundations of any size must register and file.

Nonprofit organizations with over $25,000 in annual gross receipts are required to file Form 990 with the IRS. Organizations that have gross receipts between $50,000 and $100,000 and less than $250,000 in total assets at the end of the year can opt to file a shorter form called Form 990-EZ. Private foundations of any size file Form 990-PF. Since some funders require Form 990, some smaller nonprofit organizations do file Form 990 even though they are not required to do so by the IRS.

Tuesday, March 28, 2017

Without going into the hundreds of nuances individual nonprofit organizations may have, the answer to this boils down to one simple question, "Does the organization pay taxes?" If the answer to this question is, "Yes." Then it is worth taking a look at Specialized Tax Incentives for them.